2016 · Q37
Which of the following are the roles of the finance commission India?
- 1The distribution of money collected through taxes
- 2Evaluation of centrally sponsored schemes
- 3Evolve principles based on which funds are allotted among states
- 4To develop five year plans
Select the correct answer using the codes given below:
Indian Polity, Governance and ConstitutionConstitutional and statutory bodies
- A1 and 4 only
- B1 and 3 only
- C2 and 4 only
- D2 and 3 only
Explanation
Under Article 280 the Finance Commission recommends the distribution of the net proceeds of taxes between the Union and the States (1) and the principles governing grants-in-aid of State revenues (3). Evaluating centrally sponsored schemes (2) and formulating Five-Year Plans (4) belong to the executive and the Planning Commission/NITI Aayog, not the Commission. Hence 1 and 3 only — option (B).